Constellation Brands, Inc. Class A (STZ)

Constellation Brands' stock price has been impacted by several events in the past six months, including earnings misses and analyst rating changes. The company reported first-quarter fiscal year 2026 earnings that missed analyst estimates, leading to a stock decline. Earlier in the fiscal year, third-quarter fiscal year 2025 results also fell short of expectations, resulting in a significant stock price drop. Analyst ratings have shifted, with some upgrades and downgrades from firms like Jefferies and Citigroup. The company has also faced the impact of incremental aluminum tariffs.

Demand for Constellation Brands' products exhibits seasonality. The first fiscal quarter is typically higher in marketing for its beer business due to the peak summer season. The company anticipates that shipment and depletion volumes for the full fiscal year will largely align with those of fiscal year 2024. For its wine and spirits business, Constellation Brands expects a pickup in volumes during the back half of the year due to vintage releases and increased demand during the holiday season.

Constellation Brands, Inc. (STZ) is an international producer and marketer of beer, wine, and spirits within the Consumer Defensive sector. The company has a diverse portfolio of premium brands, including Corona Extra, Modelo Especial, and Kim Crawford.

Constellation Brands, Inc. has a significant international presence with operations in the U.S., Mexico, New Zealand, and Italy. The company operates two breweries in Mexico that produce Corona and Modelo beer for the U.S. market, with a third brewery under construction in Veracruz, Mexico. Its wine production involves operating across 20,000 acres of vineyards globally. While the U.S. market accounts for over 98% of its sales, the company also has a non-U.S. segment.

Constellation Brands focuses on building strong brand equity and managing a diverse portfolio. Its beer brands, particularly Corona and Modelo, are considered iconic and have strong consumer loyalty. However, the company's brand reputation has been affected by negative events, including multiple securities fraud class action lawsuits, which allegedly damaged the company's reputation and brand equity.

Constellation Brands, Inc. has a mixed ownership structure, with a significant portion held by institutional investors. Approximately 54.44% of the company's stock is owned by Institutional Investors, 24.94% by Insiders, and 20.62% by Public Companies and Individual Investors. Major institutional owners include Vanguard Group Inc, Capital World Investors and Berkshire Hathaway Inc.